1-1                                   AN ACT
 1-2     relating to the Property Redevelopment and Tax Abatement Act and to
 1-3     the expiration of that Act.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 312.006, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 312.006.  EXPIRATION DATE. If not continued in effect,
 1-8     this chapter expires September 1, 2009 [2001].
 1-9           SECTION 2.  Section 312.005, Tax Code, is amended by adding
1-10     Subsection (c) to read as follows:
1-11           (c)  Not later than December 31 of each even-numbered year,
1-12     the comptroller shall submit a report to the legislature and to the
1-13     governor on reinvestment zones designated under this chapter and on
1-14     tax abatement agreements adopted under this chapter, including a
1-15     summary of the information reported under this section.
1-16           SECTION 3.  Section 312.002, Tax Code, is amended by adding
1-17     Subsections (e) and (f) to read as follows:
1-18           (e)  "Taxing unit" has the meaning assigned by Section 1.04,
1-19     except that for a tax abatement agreement executed on or after
1-20     September 1, 2001, the term does not include a school district that
1-21     is subject to Chapter 42, Education Code, and that is organized
1-22     primarily to provide general elementary and secondary public
1-23     education.
1-24           (f)  On or after September 1, 2001, a school district may not
 2-1     enter into a tax abatement agreement under this chapter.
 2-2           SECTION 4.  (a)  The changes in law made by this Act apply to
 2-3     a tax abatement agreement executed or modified under Chapter 312,
 2-4     Tax Code, as amended by this Act, on or after September 1, 2001.
 2-5     The execution or modification of a tax abatement agreement under
 2-6     Chapter 312, Tax Code, as amended by this Act, before September 1,
 2-7     2001, is covered by the law in effect immediately before September
 2-8     1, 2001, and the former law is continued in effect for that
 2-9     purpose.
2-10           (b)  This Act takes effect immediately if it receives a vote
2-11     of two-thirds of all the members elected to each house, as provided
2-12     by Section 39, Article III, Texas Constitution.  If this Act does
2-13     not receive the vote necessary for immediate effect, this Act takes
2-14     effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1449 was passed by the House on April
         5, 2001, by the following vote:  Yeas 141, Nays 0, 1 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 1449 on May 25, 2001, by the following vote:  Yeas 139, Nays 0,
         2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1449 was passed by the Senate, with
         amendments, on May 22, 2001, by the following vote:  Yeas 29, Nays
         1, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor